Payday-loan bans: proof of indirect impacts on supply

Payday-loan bans: proof of indirect impacts on supply

Styles in branch counts

Numbers 1, 2, 3, 4, and 5 display the styles in noticed running, opening, and branches that are closing payday loan providers, pawnbrokers, precious-metals dealers, small-loan loan providers, and second-mortgage lenders during the state-level by period. corresponds to Period 1. The APR ban had been finalized by the state governor in Period 30, initially enacted in Period 33, last but not least effective in Period 35; these occasions are suggested in each figure because of the solid straight lines.

From Fig. 1, the sheer number of running payday lending branches grows from durations 1 to 36 with a little decline in Period 24. The sheer number of operating payday lenders continues to be high until Period 37. This will be two durations following the policy took impact and, most critical, the time after which current payday lending licenses expired. Read more